LLC Formation Cost by State in 2026: Complete Comparison
Forming an LLC is the most common first legal step for new businesses, and the cost varies more than you'd expect. Kentucky charges $40 to file. Massachusetts charges $500. And the filing fee is just the beginning — annual reports, franchise taxes, and registered agent fees add up over time.
- State filing fee: $40 – $500 (median: $100)
- Registered agent: $0 – $300/year
- Annual report: $0 – $800/year
- Operating agreement: $0 (DIY) to $1,500 (attorney-drafted)
- EIN (IRS): Free
LLC Filing Fees by State
| State | Filing Fee | Annual Report | Total Year 1 |
|---|---|---|---|
| California | $70 | $800 (franchise tax) | $870 |
| Colorado | $50 | $10 | $60 |
| Delaware | $90 | $300 | $390 |
| Florida | $125 | $138.75 | $264 |
| Georgia | $100 | $50 | $150 |
| Illinois | $150 | $75 | $225 |
| Kentucky | $40 | $15 | $55 |
| Massachusetts | $500 | $500 | $1,000 |
| New Mexico | $50 | $0 | $50 |
| New York | $200 + ~$500 (publication) | $9 | $710 |
| Texas | $300 | $0 (franchise tax report) | $300 |
| Wyoming | $100 | $60 | $160 |
New York deserves special mention: the $200 filing fee sounds reasonable, but the state requires you to publish notice of formation in two newspapers for 6 consecutive weeks, costing $400-$2,000 depending on county. Albany County is cheapest (~$200). New York County (Manhattan): $1,500+.
Should You Form in Your Home State?
The internet is full of advice to form in Delaware or Wyoming for tax advantages. For 95% of small businesses, this is bad advice. Here's why:
- If you operate in California, you owe California's $800 franchise tax regardless of where your LLC is formed
- Forming in another state requires you to register as a "foreign LLC" in your home state — paying fees in both states
- Delaware's Court of Chancery benefits large corporations with complex governance disputes, not solo LLCs
Form in your home state unless you have a specific, attorney-advised reason not to.
Registered Agent: Do You Need One?
Every LLC needs a registered agent — a person or service that receives legal documents on behalf of the business. You can be your own registered agent (free) if you have a physical address in the state and are available during business hours. Commercial registered agent services cost $100-$300/year.
Using a service makes sense if you work from home (keeps your address off public records) or operate in a state where you don't have a physical presence.
DIY vs Paid Formation Services
| Option | Cost | Best For |
|---|---|---|
| DIY (file directly with state) | $40-$500 (filing fee only) | Simple single-member LLCs |
| Online services (LegalZoom, ZenBusiness) | $0-$300 + filing fee | Convenience, additional services |
| Attorney | $500-$2,000 + filing fee | Multi-member LLCs, complex structures |
For a simple single-member LLC, filing directly with the state saves $200-$500 versus using an online service. The state websites are straightforward — most can be completed in 15-30 minutes.
California's $800 Franchise Tax
California charges a minimum $800 annual franchise tax for all LLCs, regardless of revenue. This makes California one of the most expensive states for small LLCs — a business earning $0 still owes $800. The only exception: first-year LLCs are exempt from the $800 minimum (but not subsequent years).
If your California business is very small (under $5,000/year revenue), a sole proprietorship might make more financial sense than an LLC. Consult a CPA.
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How much does it cost to form an LLC?
State filing fees: $40-$500. Annual reports: $0-$800/year. Registered agent: $0-$300/year. Total first-year: $100-$1,000.
What is the cheapest state for an LLC?
Kentucky ($40), Colorado ($50), New Mexico ($50). But form in your home state — registering as foreign LLC elsewhere costs more total.